The Roles and Problems of Financial Institutions to the Growth of Small Scale Business in Nigeria
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Chapter one on The Roles and Problems of Financial Institutions to the Growth of Small Scale Business in Nigeria
INTRODUCTION
BACKGROUND OF THE STUDY
Financial institutions have a very great role to play in the growth of small scale business everywhere in the world but I will limit my discussion to their roles in Nigeria. Financial institutions could be seen as an institutions which primary function is collecting and giving out funds to individuals, firms, organizations etc. for business purposes.
From the definition of financial institution, or its function, one can see that financial institution could aid the growth of small scale business. How can this be done or achieved? That is the next question that could come to one’s mind. It could be achieved by the financial institutions giving out funds in form of loans, overdraft, grants and aids etc on request from small scale business man or woman. I will not forget to talk about or explain what a small scale business is. A small scale business could be talked about or explained by different people in different ways.
And in their different views, a lot of factors or things is being considered before calling a business small scale business. What am saying in essence is that, what Mr A calls small scale business might not be what Mr. B calls small scale business. Therefore, a small scale is business is being explained by these few people and school of thought. Blott Lawrence 1973 defines small scale business to be any industry which is independently owned and operated and not dominant in its area of operation.
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